In any functional economy, the creditor–debtor relationship is inevitable and central to sustaining credit flow and commercial stability. Under Nigerian law, a debt arises from the moment a loan agreement is validly formed and the sum advanced is acknowledged not merely upon default, provided the obligation is for a definite amount, payable at an agreed time, and grounded in a binding contractual relationship.
This clarifies the common misconception that indebtedness begins only when repayment fails.
This article provides a comprehensive examination of the legal regime governing debt recovery in Nigeria, outlining the applicable statutory framework and recognised enforcement mechanisms, including litigation, alternative dispute resolution, receivership, winding up, and bankruptcy.
It emphasizes that debt recovery is strictly a civil matter, rejects the misuse of law enforcement, and stresses compliance with contractual terms and statutory limitation periods when seeking to enforce debt claims.
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